US stocks ride trade, Brexit hopes to record high but risks loom

US STOCKS rose to the brink of record highs last week as optimism about Brexit and US-China trade relations overcame a slew of weak earnings and economic data.

But stocks may not weather disappointments from Apple and others due to report earnings this week, particularly if the Federal Reserve reveals that the global economic expansion is beyond salvation. And, as has happened so often during the last 12 months, the current optimism about Brexit and trade talks could turn to pessimism at the stroke of a tweet.

Over the weekend, China said the Phase One deal, in which Beijing would ramp up purchases of agricultural goods in return for American tariff rollbacks, is "basically complete". Stocks such as Caterpillar, which are sensitive to trade negotiations, rose sharply last week despite dire earnings rep…